Swede News For Mumbai: To Be The Second Indian City To Have IKEA Store

IKEA is set to open its second store in Mumbai later this year and would hold a ground-breaking ceremony on 11 October in Bengaluru. Mumbai will be the second city to have an IKEA store.

IKEA is investing nearly Rs 3,000 crore in the next three years to open three packing warehouses in Mumbai, Bengaluru and Delhi, as reported by LiveMint.

Despite the Centre’s recent hike in customs duty on some furnishing items to curb imports of non-essential goods, IKEA said it would not raise the prices of low-end furniture and furnishing products.

“For now, we have not seen any repercussions, but if there is continuation of costs due to hike in customs duties on furniture and furnishing items, then at some point of time we would have to pass it (burden) on to customers, but we may do it on higher-end products, not lower-end,” said Deputy Country Manager Patrik Antoni.

Patrik said IKEA was a global company and it would appreciate global trade, but would not be happy with trade barriers such as customs tariff or import duties. He also said trade barriers would only affect ‘ease of doing business,’ which will, in the long run, change customers.

The Central government had on 26 September hiked customs duties on as many as 19 items, including jet fuel, air conditioners and refrigerators, with an aim to contain imports of non-essential goods. IKEA imports most of the products it sells, and many are covered by the latest customs duty hike which includes tableware, kitchenware and household items made of plastic and travel bags, among others.

The total import bill on account of shipment of such items into the country last fiscal was Rs 86,000 crore. Containing non-essential imports was part of the five-pronged steps announced by the government to check widening current account deficit and capital outflows.